Prevailing Wage
The average wage paid to workers in a similar occupation in the same geographic area, employers must pay H-1B workers at least this amount to prevent undercutting U.S. wages.
How It Works
The prevailing wage is determined by the Department of Labor based on occupation (SOC code), geographic area (MSA or state), and wage level (I through IV, corresponding to entry-level through expert). Wage Level I represents the 17th percentile (entry-level), Level II the 34th percentile, Level III the 50th percentile (experienced), and Level IV the 67th percentile (expert). Employers must pay the higher of the prevailing wage or the actual wage they pay similar employees. H1BVisaTracker tracks the ratio of actual wages to prevailing wages, a ratio above 1.0 means the employer pays above the prevailing wage, which is a positive signal.
Related Terms
- Wage Level (I-IV), DOL's four-tier system classifying H-1B positions by experience level, Level I (entry) to Level IV (expert), which determines the minimum prevailing wage the employer must pay.
- Labor Condition Application (LCA), A DOL-certified form that employers must file before hiring an H-1B worker, attesting they will pay at least the prevailing wage and not adversely affect working conditions for U.S. workers.
- Actual Wage, The wage the employer pays to other employees with similar experience and qualifications for the same job in the same location, H-1B employers must pay the higher of the actual or prevailing wage.
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About This Definition
This definition is part of the H1BVisaTracker H-1B Visa Glossary, 26 terms explaining H-1B sponsorship, work visas, and employment-based immigration in the United States. Written for international workers, employers, and immigration professionals.